Middle Georgia Neurological Specialists, P.C. v. Southwestern Life Ins. Co.
| Decision Date | 04 November 1991 |
| Docket Number | No. 90-8651,90-8651 |
| Citation | 946 F.2d 776 |
| Parties | MIDDLE GEORGIA NEUROLOGICAL SPECIALISTS, P.C., et al., Plaintiffs-Appellees, Cross-Appellants, v. SOUTHWESTERN LIFE INSURANCE COMPANY, Defendant-Appellant, Cross-Appellee. |
| Court | U.S. Court of Appeals — Eleventh Circuit |
Richard H. Sinkfield, Linda Owens Vinson, Rogers & Hardin, Atlanta, Ga., for defendant-appellant, cross-appellee.
Charles M. Cork, III, Reynolds & McArthur, Macon, Ga., for plaintiffs-appellees, cross-appellants.
Appeals from the United States District Court for the Northern District of Georgia.
Before HATCHETT and DUBINA, Circuit Judges, and CLARK, Senior Circuit Judge.
In this diversity action, Southwestern Life Insurance Company ("Southwestern") appeals the district court's grant of summary judgment in favor of Middle Georgia Neurological Specialists, P.C. ("MGNS"), Piper Cohn, Matthew Cohn, Gary Potts, and L. Gail Cohn and Piper L. Cohn as co-administrators of the estate of Perry L. Cohn (sometimes collectively referred to as "the beneficiaries"). The district court found that Southwestern was obligated to pay life insurance proceeds under two policies insuring the life of Dr. Perry L. Cohn ("Dr. Cohn"). The beneficiaries cross-appeal the district court's denial of prejudgment interest on the proceeds.
Because both issues presented by this appeal involve questions of state law implicating substantial public policy concerns and because we are unable to locate any clear, controlling precedents in the decisions of the Georgia courts that are dispositive of these issues, we believe both issues are appropriate for resolution by the Supreme Court of Georgia. We therefore defer our decision in this case pending certification of the questions to the Supreme Court of Georgia. See Varner v. Century Finance Co., 720 F.2d 1228 (11th Cir.1983).
We submit the following for consideration by the Supreme Court of Georgia.
I. Style of the Case
The style of the case in which this certificate is made is as follows: Middle Georgia Neurological Specialists, P.C., et al., Plaintiffs/Appellees/Cross-Appellants, versus Southwestern Life Insurance Company, Defendant/Appellant/Cross-Appellee (D.C. Docket No. 1:89-CV-1281-RLV). This case is assigned number 90-8651 in the United States Court of Appeals for the Eleventh Circuit, on appeal from the United States District Court for the Northern Division of Georgia.
II. Statement of the Facts
On November 10, 1987, Dr. Cohn signed two applications for life insurance with Southwestern. One application was for a $3,500,000 policy, with the beneficiaries designated as follows: "$500,000 to Piper Cohn, son; $500,000 to Matthew Cohn, son; $500,000 to Gary Potts, business partner; balance to Estate." The other application was for a $2,500,000 policy, with MGNS designated as the beneficiary. Except for the face amounts and the beneficiaries, the pertinent provisions of the applications and policies are identical. The applications contain the following language:
(1) Each and every statement and answer in this application is complete, true, and correctly recorded, to the best of my knowledge and belief.... (3) If an Agreement with Respect to Advance Premium Payment has not been issued, 1 the policy will be effective when it is delivered to and accepted by the Applicant only if (a) the first premium has been paid, and (b) all answers recorded in this application represent without material change complete and true answers to the same questions as if they were asked at the time of delivery of the policy applied for, to the best of my knowledge and belief. (4) This application and the policy issued are the entire contract. No agent or medical examiner may pass upon insurability, modify the contract, or waive any of the company's rights or requirements....
Dr. Cohn underwent a physical examination in mid-December during which blood tests were performed; however, the results were not forwarded to Southwestern and it was not until March 11, 1988, that a satisfactory blood analysis was obtained and provided to Southwestern. On March 25, Southwestern's representative in Atlanta, Georgia, informed Stanley Rosen, Dr. Cohn's insurance agent ("Rosen"), that the policies had been approved by underwriting, and directed Rosen to secure a check from Dr. Cohn for $10,000, representing the initial monthly premium of $5,000 for each policy. On March 28, Rosen went to Dr. Cohn's office, obtained the check, and transmitted it that day to Southwestern by an express mail service.
Rosen received the policies from Southwestern on April 6. They were issued on March 30, and each provides: "The policy date is the effective date for all coverage provided in the original application." The policy date noted on each policy was March 28, 1988. Subsequent premiums were due on the 28th of each month.
Each of Dr. Cohn's policies was also accompanied by a letter to Rosen which states as follows:
Enclosed is the above-mentioned policy. Please have the statement on the reverse side of this letter attested to by the Applicant.
You are authorized to deliver this policy if the Applicant confirms that the statement is true and complete when applied to each person to be insured under such policy.
If the Applicant cannot so confirm those facts, then the policy must be returned to the Underwriting Department along with sufficient information regarding the situation. Further consideration will then be given to the proper issuance of the policy.
On the reverse side of each letter was a Policy Delivery Health Certificate which states as follows:
I agree that on the date shown below answers to questions on my original application and medical examination, if made in connection with the application, pertaining to the health, habits, and occupation of each person to be insured under this policy represent without material change true and complete answers to the same questions as if asked me today.
Rosen attempted to contact Dr. Cohn to obtain his signature on the health certificates and deliver the policies, but discovered that Dr. Cohn was out of the country on vacation. Dr. Cohn died suddenly on April 8. An autopsy revealed the presence of substantial heart disease and a healed myocardial infarction which was at least six weeks old. The pathologist opined that the likely cause of Dr. Cohn's death was cardiac arrhythmia.
The beneficiaries initially filed their complaint for insurance proceeds pursuant to the two policies in the Superior Court of Fulton County, Georgia. Southwestern removed the case to the United States District Court for the Northern District of Georgia. After completion of discovery, the parties filed cross-motions for summary judgment. The district court granted the beneficiaries' motion, denied Southwestern's motion, and entered judgment in favor of the beneficiaries which included an award of prejudgment interest. Southwestern filed a motion to alter or amend the judgment and for reconsideration, which the district court granted in part to reverse its award of prejudgment interest but denied in all other respects.
Southwestern argues that the policies issued to Dr. Cohn never became effective because only one of the conditions precedent to the formation of those contracts was ever fulfilled, namely, the payment of the first premium. In addition, the contracts required that Dr. Cohn's answers regarding his health on the applications "represent without material change" answers to the same questions "as if" they were asked on delivery of the policies, and that the policies be delivered to and accepted by Dr. Cohn.
Southwestern contends that the policies were rendered ineffective because Rosen was not able to obtain confirmation from Dr. Cohn that no material change had occurred in his health between the date on which the applications were signed and the date on which the policies were received. The district court concluded that Dr. Cohn's signatures on the health certificates were...
To continue reading
Request your trial
-
Sultenfuss v. Snow
...of insurance fatal to contract formation so as to render the coverage ineffective? Middle Georgia Neurological Specialists v. Southwestern Life Insurance Co., 946 F.2d 776, 779-80 (11th Cir.1991). Whether the insured's tardy forwarding of suit papers is cured by the plaintiff's voluntary di......
-
Hardaway Co. v. Amwest Sur. Ins. Co.
...in this case pending certification of the question to the Supreme Court of Georgia. See Middle Ga. Neurological Specialists, P.C. v. Southwestern Life Ins. Co., 946 F.2d 776 (11th Cir.1991). We submit the following for consideration by the Supreme Court of CERTIFICATION FROM THE UNITED STAT......
- McGaffin v. Argos USA, LLC
-
Southwestern Life Ins. Co. v. Middle Georgia Neurological Specialists
...this court as a certified question from the United States Court of Appeals for the Eleventh Circuit. See Middle Georgia Neurological v. Southwestern Life, 946 F.2d 776 (11th Cir.1991). The facts can be summarized as Dr. Perry Cohn made applications for two life insurance policies with South......